Hi Davo, Your scenario whilst possible, has some potential...

Hi Davo,
Your scenario whilst possible, has some potential hurdles to overcome. Firstly, a majority of our BOD would have to endorse the plan, then it would probably have to go to the SH for a vote. If enough of the 49% didn't like the deal, and wanted to challenge it using legal avenues, it could be stymied for a long time (ever seen lawyers wanting to settle a case in a hurry? They prefer to muddy the waters, delay and extract more fees!) and litigation is something publicly listed companies generally like to avoid like the plague. I am not sure how WA Government royalties are calculated in a forward hedge scenario like you propose, but I feel that if it is done on the selling price of gold (under the forward hedge scenario), then our State Government would be seriously miffed, because they would be out of pocket. It is the same WA Government who can grant,delay, or cancel mining permits at their pleasure!
I suspect Shandong have no apetite for an intergovernmental bun fight, bad publicity, costly delays, and lots of money to lawyers the result. I suggest Shandong see the value of cooperative exploitation, as if the 49% are well looked after, then no one gives a flying fonzarelli what they do with their 51%.
History suggests that the companies that do best long term in foreign jurisdictions, do well because they are good corporate citizens.
DYOR
K